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Apart from opening up the doors for smaller investors, crypto exchange Bitfinex also brings important upgrades to its platform for enhanced customer security and better transparency.
Crypto exchange Bitfinex has found the new drill to attract more participants for crypto trading activities. The British Virgin Islands-registered company has removed the minimum barrier of $10K equity requirement for crypto trading.
— Bitfinex (@bitfinex) April 9, 2019
Bifinex says that the decision comes in the wake of overwhelming demand from traders looking to get access to the professional experience on the platform.
In an official blog post, Bitfinex CEO Jean-Louis van der Velde said:
“We simply could not ignore the increasing level of requests for access to trade on Bitfinex from a wider cohort than our traditional customer base. For the last six months we have been working hard to ready our platform for a new wave of customer accounts and are now in a position to open Bitfinex to a wider audience. By dropping our minimum equity requirement, the only limits are now set by the traders themselves.”
However, removing the limit doesn’t mean an unlimited margin borrowing. The ‘terms and conditions’ page on Bitfinex notes that Bitfinex customers can finance only up to 70% of the token they buy on the exchange platform. In case the trader ends up owing more than their tokens’ worth, the exchange might take strict action against them.
The exchange warns that “Bitfinex reserves the right to seize, take over, and assume all of your liabilities and collateral and to dispose of one or more of your positions”.
Platform Upgrade for Better Security
On Tuesday, Bitfinex also stated that it is upgrading its exchange’s servers for better security. Thus, the Bitfinex operations henceforth will happen on “self-designed, dedicated servers with premium hardware for advanced security and lowest latency.”
Further, the company also plans to upgrade some areas of client services. This includes introducing automated response to client responses for quick and faster resolution.
It also plans to provide more details and information regarding the tokens listed on the exchange. The “Santiment Token Information provides education on every token on the platform to help inform customers.”
Besides, it plans to bring a new know-your-customer (KYC) portal for faster customer data verification. Bitfinex says that the portal will have an “updated infrastructure to enable the implementation of third-party tools making the process more frictionless in the near future.”
Over the last year, Bitfinex exchange has been embroiled in some major controversies. This includes the exchange’s close association with stablecoin project Tether.
There’s been a long going suspicion in the cryptosphere regarding the Tether’s USDT actual backing by physical dollars. Also, Tether is reportedly facing accusations of sending additional tokens to Bitfinex during the 2017 crypto bull run.
Recently, Tether updated its Terms of Services which has left the crypto community buzzing with more suspicion and questions.